Release date- 25082016 - Bucharest - Oltchim S.A., the largest producer of chemical goods in Romania and a major producer in Central and Eastern Europe has launched an asset sale auction process for all or parts of its assets grouped in bundles.
The Company has three main business units accounting for 94% of the sales: propylene oxide / polyols, chlor-alkali and oxo-alcohols. Oltchim has two sites in Romania located in Ramnicu Valcea and in Bradu-Pitesti. It employs 1,936 employees, thereof 1,824 in Ramnicu Valcea and 112 in Bradu-Pitesti.
Oltchim is under insolvency procedure since 2013 and is managed by its Administrators BDO Business Restructuring and Rominsolv. After filing for insolvency, the Company agreed a 36 month reorganization plan. Oltchim is now performing and in 2015 it exceeded its forecasts, by registering EUR 170.2 mn revenues and EUR 17.7 mn (10.4%) adjusted EBITDA1.
In 2016, the Company expects revenues and an adjusted EBITDA2 of EUR 176.5 mn and EUR 23.9 mn (13.6%) respectively.
Adjustments to the EBITDA in 2015 include: 1) loss from petrochemical division Bradu-Pitesti of EUR 2.9 mn, 2) loss from non-operating units in Ramnicu Valcea of EUR 2.5 mn, 3) compensatory salaries and related taxes of EUR 2.4 mn, 4) penalties of EUR 0.3 mn, 5) fees for advisory services of EUR 0.5 mn
Adjustments to the projected EBITDA in 2016 include: 1) loss from petrochemical division Bradu-Pitesti of EUR 2.6 mn, 2) loss from non-operating units in Ramnicu Valcea of EUR 1.0 mn, 3) fees for advisory services of EUR 1.7 mn
The sale of the company's assets will be conducted through an open, fair and transparent process. Multiple asset bundles are for sale and interested parties are invited to bid for any, some or all of the asset packages. The selection of the buyer(s) will be based on the economic value of the offer(s).
Parties interested in bidding for Oltchim's assets are invited to submit a letter with Expression of Interest, containing the following information:
Name and address of the interested party and the responsible persons in relation to the Statement of Interest
Information on the scope of current business activities
Disclosure on the interested parties' relationship to the Company
The deadline for the Expression of Interest is September 30th, 2016. Oltchim reserves the right to come back with clarification requests in respect to the information submitted by the interested parties and to request further information from the interested parties.
Dr. Joachim von Hoyningen-Huene
Tel: +49 175 265 9438